CHAPTER 8 QUIZ 36 TO 40
36. The primary emphasis of the profitability ratios is a determination of the firm's ability to pay off short-term obligations as they come due.
37. Debt-utilization ratios provide an indication of the way the firm is financed between debt (lenders) and equity (owners) and therefore helps the analyst determine the amount of financial risk present in the firm.
38. To examine the long-term performance over a number of years, one would use fundamental analysis.
39. The DuPont method demonstrates the relationship between assets, sales, income, and debt for creating returns on assets and equity.
40. Financial statements present a numerical picture of a company's financial and operating healt